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4er_transform | 25 days ago

Unions are everywhere and always a market distortion. Using political power to pull wealth into your union that would otherwise spread to the rest of society via competition (in labor and capital markets) is bad.

The only good unions are the ones that serve geopolitical interests of states that are positive for humanity. A steel workers union is subsidized by the rest of society, but if it keeps steel production in the US, making the US more formidable and able to project humanity-advancing policy, then it is good.

Unions freeze market forces, which raises wages, but those raised wages come directly from other parts of the economy and do so inefficiently (cost more than a dollar elsewhere to increase the wages by a dollar). This is because it distorts comparative advantages. Inequality can be reduced by unions, but only in short term. By freezing market forces in this pocket you are creating inefficiencies, which come at a cost over time (like competitive and bad actors becoming dominant).

Wages and inequality was better in the 1950s/60s US despite of unions. The US was 50% of the global economy, had dollar dominance, just about the only industrial base intact, a skilled workforce with a clear competitive advantage. These are what made wages high and inequality low.

Take the long-term perspective and center humanity rather than picking winners and losers. Unions are an emotionally charged topic because labor groups reap power from them and business groups lose power from them. This is noise. We should make decisions like this based on what serves humanity’s long term interests, and unions (and business cartels/lobbies) hold humanity back.

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